Group14 Technologies Acquires Schmid Silicon in Milestone European Expansion
July 25, 2023 | PR NewswireEstimated reading time: 2 minutes
Group14 Technologies, the leading global manufacturer and supplier of advanced silicon battery technology, acquired Schmid Silicon Technology Holding GmbH (Schmid Silicon), the most technologically advanced silane producer in Europe, in a landmark move to strengthen the global battery supply chain and meet demand for silicon battery technology worldwide. As part of the acquisition, Group14 will bring online Schmid Silicon's state-of-the-art silane factory in Spreetal (Schwarze Pumpe), Germany, to support its expanding European operations. The milestone serves to insulate Group14's customers and partners from potential supply chain disruptions – particularly in the automotive industry – and sets up the company to localize integrated silicon battery technology manufacturing in Europe.
Group14's acquisition of Schmid Silicon ensures a secure supply of silane gas, a critical precursor for its award-winning silicon battery technology, SCC55™. The acquisition marries Schmid Silicon's proven, ultra-high-purity and low-carbon silane process technology with Group14's commercially proven manufacturing capabilities to deliver high-energy density silicon battery materials – a more sustainable and higher-performing alternative that pushes the boundaries of lithium-ion batteries to keep pace with the global energy transition.
As part of the acquisition, Group14 plans to retain and integrate all current Schmid Silicon employees while also offering training to transition additional hires from traditional energy sectors into clean energy. Once the factory is online and operational, Group14 expects to grow its headcount as much as 5x, and has begun scouting for its first European offices in Germany to establish operations.
"We have successfully scaled our proven process innovation at Group14 for a wide customer base, from consumer electronics to automotive and beyond. Our acquisition of Schmid Silicon's highly energy-efficient process technology and factory was a natural step as we continue to meet the dramatic uptick in demand for advanced battery technology while also supporting the European Union's decarbonization strategies," said Rick Costantino, CTO & co-founder of Group14 Technologies.
Once operational, Group14's silane factory will be a critical foothold into Europe as the company continues to expand worldwide as part of its global roadmap to build modular factories in key markets, positioning the company to meet demand for electrification across all corners of the globe. Today, Group14 is already shipping SCC55™ to customers representing over 90 percent of worldwide lithium-ion battery production from its first commercial-scale factory in Washington State, all while building its second U.S. factory in Moses Lake and completing the commissioning of its joint venture factory with SK in South Korea.
"Group14 has been rapidly growing across critical markets, and now we're looking forward to being closer to our automotive customers in Europe to support the global energy transition," said Rick Luebbe, CEO & co-founder of Group14 Technologies. "Germany has long been the home for many of the world's largest and oldest automakers, and we're looking forward to putting this critical stake in the ground to bring forth a resilient silicon battery supply chain capable of meeting global demand right now."
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